Codes for "Pareto-Improving Optimal Capital and Labor Taxes" by Katharina Greulich, Sarolta Laczo, and Albert Marcet

All codes run in Matlab. They use the function 'broydn' provided by Michael Reiter. One could also use other algorithms to solve the systems of non-linear equations we solve.

- mainbench.m (mainbenchNoL.m) is the calibration with elastic (fixed) labor supply

- path3vNoL_fb.m solves the model with fixed labor supply and with lump-sum transfers between the the two types for many relative Pareto weights

- path3vNoL.m solves the model with fixed labor supply for many relative Pareto weights and generates Figure 1

- path3v_fb.m solves the model with lump-sum transfers between the the two types for many relative Pareto weights

- path3v.m solves our baseline model for many relative Pareto weights and generates Figure 2 and Figure 4

- path3v_dur.m generates Figure 3 

- path3vPO.m and path3vPO_taumax generate Figure 5

- path3v_ded.m, path3vPO_ded.m, and path3vPO_ded_taumax.m generate Figure 6

- IIIAtaumax.m generates Figure 1 in the Online Appendix

Note that some of these codes use the output of other codes that are higher on this list.
